Rishi Sunak is to announce £22 billion in funding for the establishment of a new UK infrastructure bank.

The chancellor is expected to reveal £12 billion of capital and £10 billion in loan guarantees in his budget statement on Wednesday.

The new bank, which will fund infrastructure projects across the UK, will be launched sometime in the spring.

The Treasury said that the money would help kick-start private funding which would support £40 billion of infrastructure investment.

The bank will offer loans, equity, and guarantees, all of which can be customised to support private infrastructure projects in a range of areas, including renewable energy and carbon capture.

The government said the bank will offer loans to local authorities at lower rates.

“We are backing this Bank with the finance it needs to deliver modern infrastructure fit for the 21st century and create jobs,” said finance minister Rishi Sunak. “This shows how serious we are about levelling up the country so that everybody can benefit from our future prosperity.”
Alongside the £22 billion, the government has also expected to put forward £375 million to co-invest with private UK businesses.

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